Battery grade graphite demand has already taken off. That is...

Battery grade graphite demand has already taken off. That is also confirmed by the number of plants operating and the quantity of cars sold. The problem is the market for fines was roughly 400-500 KT a year globally heading into this year. Syrah is selling 180,000 tons into this market. An increase in supply of roughly 40% in a short period of time. So prices have collapsed domestically in China, as you'd expect.

The global market grew by 70 KT in 2018 and will grow by another 70 KT - 100 Kt in 2019 per Syrah. The 2019 estimate is also consistent with the growth in EV sales we're seeing globally, and particularly out of China. The market should be able to absorb Syrah's supply and less than 100 KT of China domestic supply should be displaced by the end of the year. This should allow prices to rise over the next 12 months, although not sure how prices respond in the short term.

By the end of 2019 fines demand will have grown over 250 KT in 4 years. More than a 50% increase.